- Brent crude oil hitting more than 3-year highs on Monday.
- In the last week, Brent and WTI both rose by 5.4% and 6.3%.
- Leading oil-producing groups, including OPEC+, are not able to supply enough to meet strong global demand.
Crude oil prices galloped on Monday, with benchmark Brent crude oil hitting more than 3-year highs on expectations that the global supply will remain tight in future amid restrained output by leading oil producers. A significant rise in demand is expected despite the rising concerns related to the spread of coronavirus.
March delivery Brent Crude oil futures last traded at US$86.44 per barrel up 0.09%, whereas March delivery WTI crude oil futures traded 0.64% up at US$81.83 per barrel as of 17 January 2022 at 12:32 PM AEDT.
Crude oil rally
The significant rise in crude oil prices follows a terrific rally in the last week when Brent and WTI both rose by 5.4% and 6.3%, respectively.
Frantic oil buying triggered on hopes that Omicron variant won’t be able to dent the global oil demand has increased the demand to the next level.
Source: © Tebnad | Megapixl.com
Additionally, the prices of crude oil are buoyed as leading oil-producing groups, including OPEC+, are not able to supply enough to meet strong global demand.
Furthermore, worries of a Russian attack on Ukraine that could affect the overall energy supply dynamics is also helping to lift oil prices.
Brent Crude oil prices hit above three-year high mark on Monday on expectations that global energy demand will rise despite rising concerns of the Omicron variant of coronavirus and tight oil supplies.